RAM Sustainability assigns Gold sustainable finance rating to Dagang NeXchange’s Sustainable Finance Framework – the first in Malaysia to include Green Enabling Projects

Published on 01 Apr 2026.

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RAM Sustainability has accorded Dagang NeXchange Berhad’s (DNeX) Sustainable Finance Framework (the Framework) a Gold Sustainable Finance Rating (SFR) following a second-party opinion assessment of the Framework – the first in Malaysia to incorporate Green Enabling Projects (GEPs).

The Gold rating reflects strong alignment with the transparency and disclosure requirements of relevant sustainability guidelines. The GEPs meet all criteria of the International Capital Market Association’s Green Enabling Projects Guidance and indicates commitment to transparency on end use. The four criteria under the guidance are that the projects: (i) are necessary for an enabled green project’s value chain; (ii) have no carbon lock-in; (iii) have clear, quantifiable and attributable environmental benefit (EB); and (iv) mitigate adverse social or environmental impacts. The SFR is further underscored by the expected contribution of the Framework’s eligible project categories to a range of positive net environmental and socio-economic impacts.

We view DNeX’s sustainability governance and management to be satisfactory, with oversight by its board of directors and governance structures embedded across the DNeX Group. DNeX’s sustainability strategy is evolving and currently high level, with a bottom-up management approach.

An investment holding company operating mainly in Technology, Energy and IT, DNeX holds majority stakes in semiconductor wafer manufacturer Silterra Malaysia Sdn Bhd (Silterra) and Ping Petroleum Ltd, an oil & gas (O&G) exploration and production company.

Despite DNeX’s involvement in O&G, funding under the Framework excludes all fossil fuel-related activities. Although the Energy segment was the only profit-making segment in FY 2024, DNeX is focused on growing its Technology and IT segments over the medium term, with eligible projects to be undertaken in these segments. Silterra accounted for 60% of DNeX Group’s revenue for the period while the Energy segment contributed 27%.

Notwithstanding DNeX’s sizeable exposure to O&G and its ESG-sensitive nature, the company has stated that it has no active plan to acquire new O&G fields in the near to medium term, instead optimising the value of existing assets. The company is developing a phased decarbonisation roadmap with specific milestones, in line with its Net Zero 2050 target.

DNeX will issue senior Islamic medium-term notes and/or subordinated perpetual Islamic notes under a proposed Islamic notes programme of up to RM3.0 billion in nominal value. One eligible project identified to be funded under the Framework in the immediate term is the investment in energy-efficient tools and equipment for Silterra.

 

Analytical contacts
Amirah Jamil
(603) 2708 8294
amirah@ram.com.my

Nathania Wei
(603) 2708 8291
nathania@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my

 

This external review or second opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability. It is also not a credit assessment on the proposed Green, Social or Sustainability Bonds/Sukuk.

About RAM Sustainability

RAM Sustainability Sdn Bhd (RAM Sustainability) is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad (RAM Group). RAM Sustainability is the first ASEAN-based provider of ESG ratings and second opinions and has the distinction of being the first Registered Observer of ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles in ASEAN. For further details, please refer to https://www.ram.com.my/sustainability.

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